Terms and Conditions of Accounts with Overdraft Facility

Terms and Conditions of Accounts with 1 (3) Overdraft Facility Consumers

Effective as of 1.1.2017.

The Terms and Conditions of Accounts with Overdraft Facility 3 INTEREST RATE and the General Account Terms and Conditions shall apply to the revolving credit facility linked to the account. In the event of 3.1 Interest on floating-rate credit any inconsistency or discrepancy between these sets of terms and conditions, the Terms and Conditions of Accounts with Interest on the floating-rate credit comprises the reference interest Overdraft Facility shall apply. rate and the bank’s markup. The credit agreement sets forth the reference interest rate and the margin as well as the effect of chang- 1 DEFINITIONS es in the reference interest rate on the interest payable on the credit amount. 1.1 Mortgage loan means a consumer loan in security of which the borrower gives shares in a housing cooperative entitling its holder 3.2 Effect of a change in the reference interest rate on the to possession of an apartment, residential property or usufruct of credit interest rate property. When calculating the loan interest rate, the reference interest rate 1.2 Foreign currency loan means a home loan or a mortgage loan must be at least 0. granted in a currency other than the EU or EEA currency where the consumer resides, or in a currency of a country other when The credit interest rate for the first interest period and a change in the where the consumer earns his/her income or has assets that interest rate appear from section Credit Interest Rate under the credit he/she uses to repay the loan. agreement. 1.3 Costs of the credit refer to the total amount of interest, ex- Euribor rate penses and other charges known to the bank and payable by the debtor owing to his/her obligation to the bank, including any The Euribor rate is a euro-area money market reference interest rate costs of insurance and other additional services related to the whose determination and quotation days are based on the interna- credit agreement if obtaining the credit on the marketed terms tional practice in force from time to time. requires entry into an agreement on the additional service. Base rate 1.4 Effective interest rate refers to an annual interest rate deriving The base rate is the rate half-yearly confirmed by the Ministry of from calculating the costs of the credit in terms of annual inter- Finance. est on the credit amount and taking account of amounts repaid. OP-Prime interest rate 1.5 Distance selling refers to a transaction whereby an agreement on a service is made through telecommunications, with the cus- The OP-prime rate is a reference interest rate announced by OP tomer not meeting the bank representative in person. Distance Cooperative which is used to regulate OP Financial Group's borrow- selling excludes any transaction based on an existing online or telephone bank agreement. ing and lending rates. OP Cooperative's Executive Board determines the OP-Prime rate, taking account of market interest rate movements 1.6 Provision of information in permanent form refers to provid- and interest rate expectations. More information on the bases for OP- ing information on OP eServices or to a written notification. Prime rate determination is available at op.fi and from OP Financial The bank shall notify its eServices customers of any changes in Group's member bank branches. this credit agreement, its terms and conditions, and the bank's list of service charges and fees as well as other notifications 3.3 Fixed interest rate based on this credit relationship by sending the debtor a mes- sage on OP eServices. The interest rate applied to fixed-rate credit remains the same throughout the loan term. If the customer has no eServices Agreement with the bank, the bank will send the abovementioned notifications by post to the 3.4 Notification of interest rate address reported to the bank or the Population Register Centre. The bank shall notify the debtor of changes in interest rates as speci- 1.7 Sanctions refer to a sanction, financial sanction, export or fied in the General Account Terms and Conditions. import ban, trade embargo or another restrictive action im- posed, administered, approved or executed by the Finnish gov- 3.5 Cessation or suspension of quotation of the reference ernment, United Nations, European Union, United States of interest rate America and United Kingdom or their competent authorities or governing bodies. If quotation of the reference interest rate ceases or is suspended, the reference interest rate applicable to the credit shall be determined in 2 USE OF CREDIT accordance with a statute which is issued on the new reference interest rate or with a decision or instructions issued by the authori- Use of the credit facility requires that ties.  the debtor has signed the credit agreement; If no statute on a new reference interest rate is enacted or no decision or instructions on the reference interest rate are issued by the  the bank has received the agreed collateral when granting the relevant authorities, the bank and the debtor will agree on a new credit, and all pledge and guarantee documents have been duly reference interest rate applied to the credit. Should the bank and the debtor fail to reach agreement on the new reference interest rate signed and in the possession of the bank; and before the end of the interest determination period, the reference  any other preconditions for drawing down the credit or part interest rate applicable to the credit will remain the reference interest rate applied to this credit before the end of the interest determination thereof have been fulfilled. period. Credit may be drawn down at an OP Financial Group member coop- If the debtor and the bank cannot reach agreement on a new refer- erative bank branch, on OP eServices or by using another instrument ence rate within six (6) months of the end of the interest rate deter- intended for use of the credit. The debtor or a person authorised to mination period, the bank shall determine a new reference rate after use the credit may use a payment instrument only in such a way that hearing banking regulators. the credit limit is not exceeded. 3.6 Penalty interest If there are two or more debtors, each may singly use the credit unless otherwise agreed in writing. If any of the debtors wishes to If the debtor defaults on credit repayment or payment of interest prevent the use of credit, the bank must be notified thereof, in which charges or other charges and fees or exceeds the credit limit, he/she case the bank has the right to prevent its use. Thereafter, the credit must pay annual penalty interest on the overdue amount from the may be used only by all debtors jointly. due date until the date when the overdue amount arrives at the bank or exceeding the credit limit comes to an end.

330862e.dot Terms and Conditions of Accounts with 2 (3) Overdraft Facility Consumers

The penalty interest rate is seven (7) percentage points higher than 7.2 Release of collateral the reference interest rate referred to in the Interest Act. However, penalty interest is never lower than the interest charged on the credit In case the debtor has lodged collateral in security for repayment of by the bank. the credit, the bank will release said collateral as soon as the debtor returns all of the funds, interest included, drawn down on the basis of If the interest charged by the bank prior to the credit maturity is high- the credit agreement. er than the penalty interest referred to in the Interest Act, the bank will have the right to charge this interest as penalty interest for a 7.3 Non-binding ancillary contract maximum of 180 days from the date on which the entire credit has matured, but only up to the day on which the relevant court has Another contract related to the credit agreement will not be binding issued a ruling regarding the credit. Thereafter, the credit institution on the debtor in case he/she cancels the agreement, if such ancillary will charge penalty interest under the Interest Act. service is provided by a bank or a third party on the basis of an agreement or another arrangement between the third party and the 4 CHANGE IN CHARGES AND FEES bank. The bank shall notify of any changes in charges and fees in the If the debtor wishes to keep the ancillary contract in force despite manner specified in the General Account Terms and Conditions. cancellation of the credit agreement, he/she must inform the bank in permanent form thereof within 30 days of sending the notice of can- 5 POSTPONEMENT OF THE REPAYMENT DATE cellation. In case the ancillary contract remains in force, the bank will charge a price based on the contract. If the due date is not a business day, the repayment date of credit and the related interest and charges related to the management of 8 CLOSING THE ACCOUNT DUE TO NOTIFICATION BY credit will be postponed until the next business day. In such a case, AN EXECUTION OFFICER the bank will charge credit interest, according to the interest determination period preceding the postponement of the repayment date up If an execution officer notifies the bank of a prohibition of payment or to the postponement date, on the entire remaining principal of the remittance pertaining to the credit, the bank shall have the right to credit. immediately close the account and prevent its use. The bank shall promptly inform the debtor of closing the account. In such a case, the Under these terms and conditions, business days include weekdays debtor and a party authorised to use the credit are obliged to return from Monday to Friday excluding Finnish religious holidays, Inde- the instruments available for use of the credit to the bank. In such a pendence Day, First of May, Christmas Eve and Midsummer Eve as case, the bank has the right to terminate the agreement and call for well as days when the general payment transfer systems of banks, repayment of the credit as specified in Clause 11 of the special terms according to a notification by the Bank of Finland, are not in service. and conditions of credit. 6 RESTRICTING USE OF CREDIT 9 EXPIRY OF FIXED-TERM CREDIT AGREEMENT The bank has the right to prevent the debtor from using the credit A fixed-term credit agreement shall expire and the credit shall fall due facility linked to the account if for repayment on the agreed date specified in the credit agreement. 1. there is reason to suspect that it is being used in an unauthor- The credit may no longer be used from the due date. ised manner or with fraudulent intent; 10 TERMINATION OF CREDIT AGREEMENT 2. the risk of the debtor failing to fulfil his/her repayment obligation The debtor has the right to terminate the credit agreement with im- has risen considerably; mediate effect. 3. the debtor has filed an application, as referred to in either the The bank may terminate the credit agreement at two (2) months’ Act on the Adjustment of the Debts of a Private Individual or the notice. Restructuring of Enterprises Act, with a court of justice; Upon termination, the credit must be repaid, interest charges and 4. a private guarantor or a private pledger has notified the bank of expenses included. Following termination of the agreement, the no longer being liable for a new credit to be drawn down; or debtor shall have no right to use the credit. 5. the debtor is subject to sanctions or acts on behalf of private or A guarantor and third-party pledger have the right to prevent use of legal person subject to sanctions. the credit and terminate the credit agreement by paying the credit The bank shall promptly notify the debtor of prevention of the use of amount, interest, commissions, penalty interest and charges and fees the credit facility in permanent form. In such a case, the bank has the related to repayment of the credit and the management of the ac- right to terminate the agreement and call repayment of the credit as count and credit at a Group member cooperative bank branch. specified in clause 11 below. The bank shall refund the amount of charges and fees paid in ad- 7 RIGHT OF CANCELLATION (RIGHT OF WITHDRAWAL) vance by the debtor for the period after the termination of the agreement. 7.1 Right of cancellation 11 SPECIAL EVENTS OF DEFAULT The debtor has the right to cancel the credit agreement by informing the bank thereof in permanent form within 14 days of the date when 11.1 Exceeded credit limit he/she received in permanent form a copy of the credit agreement The agreement will terminate and the credit will fall due for payment and its terms and conditions, and also advance information in the at the bank’s written request, if the credit amount exceeds the agreed case of distance selling. credit limit when charging the commission, interest or other fees If the debtor cancels the credit agreement, the bank will charge, as under the terms and conditions. compensation, interest on the credit for the period that the credit was The debtor shall pay the bank penalty interest on exceeding the available to the debtor. If the bank has paid the authorities charges credit limit, a charge for sending a reminder and other fees and due to the conclusion of the credit agreement and such charges are charges for collection of the overdrawn amount. The bank has the not refunded in the case of cancellation, the bank will have the right right to debit the account for said charges and fees. to receive compensation for such charges from the debtor. The bank will have no right to demand repayment of the credit if any If a loan other than a mortgage loan concluded is based on distance late payment is due to the debtor’s illness, unemployment or another selling, the bank has the right in the case of cancellation in cases comparable reason beyond the debtor’s control. However, the bank mentioned in law charge effective interest for the period when the will have the right to demand repayment for the credit, if it were credit has been available to the debtor. manifestly unfair for the bank to continue the credit relationship with The debtor must return funds, interest included, obtained on the the debtor, in view of the duration of such delay and other circum- basis of the agreement without delay or within 30 days of sending the stances. notice of cancellation and make the aforementioned payments, or otherwise the cancellation will become void.

330862e.dot Terms and Conditions of Accounts with 3 (3) Overdraft Facility Consumers

11.2 Other reasons 14 BANK’S RIGHT TO DISCLOSE INFORMATION ON DEBTOR’S CREDIT STANDING TO GUARANTOR AND The credit will fall due for payment upon the bank’s written demand if PLEDGOR 1. the debtor or any of the debtors has provided the bank with misleading information which may have affected the bank’s de- The bank has the right to disclose information to a guarantor and cision to grant the credit or its terms and conditions; pledgor concerning all of the debtor’s commitments, payment defaults and other circumstances affecting the debtor’s credit standing. 2. any of the debtors dies; 15 NOTIFICATION OF CHANGES IN FOREIGN EXCHANGE 3. the pledge lodged as security for the credit is converted into RATES cash; The bank will inform the debtor of a foreign currency loan in perma- 4. the debtor has failed to insure the pledge lodged as security for nent form when the remaining credit amount or the amount of instal- the credit; ments differs by over 20 per cent from what it would be if the foreign exchange rate valid at conclusion of the credit agreement were ap- 5. any of the debtors has been in material breach of the credit plied. agreement. 16 RIGHT OF ALTERATION The credit will fall due for immediate repayment as a result of the commencement of the debtor’s bankruptcy. The bank has the right to alter the credit agreement in a manner If a credit guarantor or any of them dies or is placed in bankruptcy, stipulated in the General Account Terms and Conditions. the debtor or a co-guarantor must obtain a new guarantor approved 17 EFFECTS OF CAUSES BEYOND THE BANK'S CONTROL by the bank or some other collateral approved by the bank within the period specified by the bank, which must be at least one month. ON COSTS OF CREDIT Otherwise, the bank may demand credit repayment in writing. If the costs of the credit incurred by the bank and related to this credit If the bank demonstrates that the collateral lodged can no longer be facility increase during the validity of the credit relationship or the deemed sufficient and a reduction in the value of the collateral is due bank’s income from this credit decreases owing to legislative to actions by the debtor or the owner of the pledge, the debtor must amendments or an official decision, the debtor must compensate for increase the collateral within the period specified by the bank, which the portion of the increase in costs affecting the credit or the portion must be at least one month, and in the manner approved by the of the decrease in income. This amount will be charged as a sepa- bank, or must amortise the credit by the amount specified by the rate payment or added to the credit interest converted into an annual bank in writing. Otherwise, the bank may demand credit repayment in percentage point. The Bank’s right to the abovementioned increase writing. or payment will expire as soon as its grounds have ceased to exist. The bank will inform the debtor of such payment and its grounds in 11.3 Entry into force of demand for repayment permanent form. Demand for repayment of the credit will enter into force within four weeks or, if the debtor has previously been sent a reminder of late 18 EFFECT ON CREDIT INTEREST DUE TO REASONS OF THE payment or some other breach of agreement, within two weeks of BANK’S LIQUIDITY OR CAPITAL ADEQUACY sending the debtor notice of repayment of the credit. If the debtor The bank has the right to increase the credit interest rate if the pays the overdue amount or rectifies said breach of agreement within maintenance of its liquidity or capital adequacy at sufficient levels so the abovementioned period, demand for repayment will be cancelled. requires. The bank may increase the interest rate by no more than The credit will fall due for immediate repayment as a result of the the rate corresponding to the rate applicable to similar credit facilities debtor’s bankruptcy. provided by the bank on the date of the increase. If the credit institution demands repayment of the credit, the costs of The interest rate or the margin may not be raised until three years the credit allocated to the unused credit term must be deducted from have passed from the date of conclusion of the credit agreement. the remaining amount owed to the credit institution. However, the The bank will notify of an interest rate increase in permanent form at bank may charge all of the costs arising from the actions related to least three months before the increase becomes effective. In such a the establishment of the credit facility and specified in the credit case, the debtor has the right to terminate the credit agreement agreement. without expenses related to early repayment and also during the 12 CHANGE IN THE TERMS AND CONDITIONS OF interest rate determination period. PREVIOUSLY GRANTED CREDIT If the grounds for an increase in the interest rate cease to exist, the credit institution will decrease the rate to the level at which the inter- If the credit limit previously granted to the debtor increases or the est rate would stand in accordance with the interest terms initially terms and conditions governing the credit are altered by virtue of this agreed. agreement, the terms and conditions of this agreement shall apply to the credit in its entirety. 19 REGULATORS 13 USE OF CREDIT HISTORY AND REPORTING PAYMENT Consumer loans are supervised by the Finnish Financial Supervisory DEFAULT TO THE CREDIT INFORMATION REGISTER Authority (www.finanssivalvonta.fi), the Finnish Competition and When granting and monitoring credit and accepting a guarantee or Consumer Authority (www.kkv.fi) and, as district administrative au- pledge, the bank uses the personal credit information of the person thorities under its control, Regional State Administrative Agencies making a commitment. Such credit history is available from the credit (www.avi.fi). information register maintained by a credit reference agency (such as Suomen Asiakastieto Oy). In case the debtor defaults in payment, the bank has the right to report such default of payment to the credit information register related to the credit agreement, if at least 60 days have passed since the original due date mentioned in a reminder and the bank and the debtor have not made any new payment agreement after the original due date, or if the registration of entry of such payment default is otherwise permitted under applicable laws or a ruling by the data protection authorities.

330862e.dot